4. Edit the command to point to where the imgur_upload script is located:

Please note that the Nautilus Actions Configuration under Ubuntu Karmic looks different then it used to (I've just noticed this myself).

Once you have completed this, click the second button on the left called "Record all the modified actions".

You should now see an "Upload to Imgur" option when right clicking an image:

And after uploading, a dialog should display the image url:

Note: if you don't use Nautilus, another reddit user (downdiagonal) come up with a curl command you can use to upload images to Imgur via command line. Simply add this to your .bashrc file (it should be in your home folder):